Maple Leaf Foods Closes CDN 215m Acquisition of Italian Meat Company VIAU Foods.
M2 EQUITYBITES-November 14, 2018-Maple Leaf Foods Closes CDN 215m Acquisition of Italian Meat Company VIAU Foods
(C)2018 M2 COMMUNICATIONS http://www.m2.com
14 November 2018 - Canada-based consumer protein company Maple Leaf Foods Inc. (TSX: MFI) has closed the acquisition of Canada-based Italian meat company VIAU Foods for a purchase price of CDN 215m (USD 166m) , including CDN 30m (USD 23m) in Maple Leaf stock, the company said.
The transaction will be financed through a combination of cash-on-hand and drawings under Maple Leaf's existing credit facility.
With sales of CDN 180m (USD 139m) over the last 12 months, the transaction is expected to be accretive to Maple Leaf's earnings per share in the first year and to the company's margin expansion over time.
Maple Leaf Foods said this acquisition expands its position in the growing market for premium dry cured and pepperoni meat products and provides further production capacity in Quebec, an important strategic base to grow both Canadian and US sales.
It also enables VIAU to expand its portfolio to include raised-without-antibiotic products, leveraging Maple Leaf's leadership in this growing market.
VIAU is a leading supplier of dried pepperoni and other pizza toppings to the North American foodservice industry and markets its products through retailers across Canada.
Maple Leaf Foods Inc. makes products under national brands. Maple Leaf employs approximately 11,500 people and does business in Canada, the US and Asia.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Date:||Nov 14, 2018|
|Previous Article:||MTech, MJ Freeway Choose Post-Merger Name.|
|Next Article:||Mann Lake Completes Management Buyout with Support of Grey Mountain Partners and Acquires Kelley Beekeeping.|